After the U.S. national address, the domestic stock market, which had plunged more than 4%, is attempting a rebound on the 3rd. Investor sentiment appears to be improving on news that Iran is drafting a protocol for safe passage through the Gulf of Oman and the Strait of Hormuz.
As of 9:02 a.m., the KOSPI index is trading at 5,394.82 points, up 160.77 (3.07%) from the previous trading day.
Individual investors alone are net buying 81.4 billion won, lifting the index. Foreign investors and institutions are net selling 71.8 billion won and 16.6 billion won, respectively. Foreign investors have been on a selling streak for 12 trading days.
Specifically, among exchange-traded fund (ETF) flows, financial investment is net selling 36.9 billion won, while the national pension funds and investment trusts are net buying 3.2 billion won and 4.4 billion won, respectively.
Most large-cap stocks by market capitalization are rising. Samsung Electronics is up 3%, and SK hynix is surging 4%, recovering "1.8 million Electronics" and "860,000 Hynix," respectively. Among all listed companies, 764 are rising and 54 are falling.
At the same time, the KOSDAQ index is also trading higher by 25.89 (2.45%) at 1,082.23 from the previous trading day. On the KOSDAQ market, individual investors alone are net buying 46.5 billion won.
Sam Chun Dang Pharm is jumping 5% to trade in the 640,000-won range, while most large-cap stocks by market capitalization are rising.
Overnight, there was a report that Iran is drafting a protocol to monitor passage through the Strait of Hormuz. Iran Vice Minister of Foreign Affairs Kazem Gharibabadi said, "It is not about restricting vessel traffic, but about ensuring safe passage and improving related services."
Accordingly, the market leans toward the view that, rather than an actual closure of the Strait of Hormuz, a certain level of passage is likely to be maintained. Kim Seok-han, a researcher at Mirae Asset Securities, said, "The market seems to be focusing on the 'opening of the Strait of Hormuz' aspect of this news and viewing it as a positive."
It was also reported that about 40 countries, including Korea, held a videoconference and discussed ways to keep the Strait of Hormuz open. The United States did not attend the meeting, but participating countries were said to have emphasized that they would mobilize all diplomatic and economic means to ensure the strait remains open.
However, international oil prices are marching higher. West Texas Intermediate May futures settled at $111.54 on Apr. 2, up 11.41% from the previous trading day. Brent June futures also jumped 7.78% to settle at $109.03.
The three major New York indexes ended mixed the previous day. They opened sharply lower on concerns of a prolonged war following U.S. President Donald Trump's national address, but pared losses on news that talks were underway to keep the Strait of Hormuz open.
Meanwhile, the won-dollar exchange rate opened at 1,510.8 won per U.S. dollar, down 8.9 won from the previous day.